LOS ANGELES - Puma Biotechnology, Inc. (NASDAQ: NASDAQ:PBYI), a biopharmaceutical company specializing in cancer care, will be added to the Russell 3000 Index following the annual reconstitution by Russell Investments. The inclusion will take effect after U.S. markets open on July 1, as announced by the preliminary list of additions published on May 24.
Alan H. Auerbach, CEO and President of Puma Biotechnology, expressed satisfaction with the company's inclusion in the index, anticipating increased liquidity and exposure to a wider base of institutional investors.
The Russell 3000 Index, which captures the 4,000 largest U.S. stocks ranked by total market capitalization at the end of April, ensures membership for one year and includes automatic placement in either the large-cap Russell 1000 or small-cap Russell 2000, along with relevant growth and value style indexes.
Russell Investments establishes index membership based on objective market-capitalization rankings and style attributes. The indexes are extensively utilized by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies, with over $10 trillion in assets benchmarked against Russell’s U.S. Indexes.
Puma Biotechnology is known for developing and commercializing products to enhance cancer treatment, including NERLYNX® (neratinib), approved by the FDA for the treatment of HER2-positive breast cancer. Recently, the company initiated a Phase II clinical trial for alisertib, an anti-cancer drug, targeting small cell lung cancer.
The information reported here is based on a press release statement.
InvestingPro Insights
As Puma Biotechnology (NASDAQ: PBYI) prepares to join the Russell 3000 Index, investors are looking closely at the company's financial health and stock performance. According to InvestingPro data, Puma Biotechnology has a market capitalization of $192.96 million USD, which reflects its standing among small-cap stocks. The company's P/E ratio, based on the last twelve months as of Q1 2024, stands at a reasonable 12.13, suggesting that the stock may be valued appropriately relative to its earnings.
Despite recent challenges, Puma Biotechnology has maintained a strong gross profit margin of 73.44% over the last twelve months as of Q1 2024. This indicates that the company is effective at controlling the cost of goods sold and retaining a significant portion of revenue as gross profit. Moreover, the company's operating income margin is at 11.74%, underscoring its ability to translate sales into profit.
InvestingPro Tips highlight that Puma Biotechnology's valuation implies a strong free cash flow yield, which can be an attractive feature for value-oriented investors. Moreover, analysts predict the company will be profitable this year, aligning with the positive outlook on its earnings potential. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available for Puma Biotechnology at https://www.investing.com/pro/PBYI, which could provide further insights into the company's financial health and stock performance.
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